ICAEW BIP · Chapter 9 · Question 8 of 13
A company sold 4,600 units for total revenue of £262,200. The standard selling price is £55 per unit. What is the sales price variance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) £9,200 favourable
Explanation
Standard revenue for actual sales = 4,600 x £55 = £253,000. Actual revenue = £262,200. Price variance = £262,200 - £253,000 = £9,200 favourable, because the average actual price (£57) was higher than standard.
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